Top 3 Utilities Stocks That May Plunge In Q2

As of June 3, 2024, three stocks in the utilities sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

Ormat Technologies, Inc. ORA

• On May 8, Ormat Technologies posted better-than-expected first-quarter financial results. “During the first quarter of 2024, Ormat delivered exceptional growth, driving a 21.0% increase in total revenue, a 25.5% rise in earnings per diluted share, and a 14.4% increase in Adjusted EBITDA, supported by our strong performance across all segments,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. The company's stock gained around 12% over the past month and has a 52-week high of $88.26.
• RSI Value: 73.50                              
• ORA Price Action: Shares of Ormat Technologies rose 0.2% to close at $75.40 on Friday.

The AES Corporation AES

• On May 2, AES posted better-than-expected quarterly earnings. “We had a strong first quarter, financially and strategically, in line with our expectations.  During the quarter, we signed 1 GW of long-term contracts for renewables with Amazon, for a total of 3.1 GW since 2021, making AES one of the largest renewables developers in Amazon’s portfolio,” said Andrés Gluski, AES President and Chief Executive Officer. The company's stock gained around 16% over the past month and has a 52-week high of $22.60.
• RSI Value: 73.44
• AES Price Action: Shares of AES fell 0.8% to close at $21.59 on Friday.

NextEra Energy, Inc. NEE

• On May 28, Morgan Stanley analyst David Arcaro maintained NextEra Energy with an Overweight and raised the price target from $79 to $83. The company's stock gained around 14% over the past month and has a 52-week high of $80.47.
• RSI Value: 74.36
• NEE Price Action: Shares of NextEra Energy gained 2.3% to close at $80.02 on Friday.

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